| Question 1 of 15 | 1.0 Points |
Assets are listed on the balance sheet in order of: I) Decreasing liquidity II) Decreasing size III) Increasing size IV) Relative life | A. I only | | | B. III and IV only | | | C. II only | | | D. IV only | | Reset Selection |
| Question 2 of 15 | 1.0 Points |
The difference between Total Assets of a firm and its Total Liabilities is called. | A. Net working capital | | | B. Net current assets | | | C. Net worth | | | D. None of the above | | Reset Selection |
| Question 3 of 15 | 1.0 Points |
The difference between Current Assets of a firm and its Current Liabilities is called. | A. Net worth | | | B. Net working capital | | | C. Gross working capital | | | D. None of the above | | Reset Selection |
| Question 4 of 15 | 1.0 Points |
Which of the following is an example of leverage ratios? | A. Debt-Equity ratio | | | B. Quick ratio | | | C. Payout ratio | | | D. Return on equity | | Reset Selection |
| Question 5 of 15 | 1.0 Points |
Which of the following is an example of liquidity ratios? | A. Times interest earned (TIE) | | | B. P/E ratio | | | C. Return on equity | | | D. Quick ratio | | Reset Selection |
| Question 6 of 15 | 1.0 Points |
Given the following data: Current assets = 500 Current liabilities = 250 Inventory = 200 Account receivables = 200 Calculate the current ratio: | A. 2.0 | | | B. 1.0 | | | C. 1.5 | | | D. None of the above | | Reset Selection |
| Question 7 of 15 | 1.0 Points |
Given the following data: Sales = 3200 Cost of goods sold = 1600 Average total assets = 1600 Average inventory = 200 Calculate the asset turnover ratio: | A. 2.0 | | | B. 0.9375 | | | C. 1.33 | | | D. None of the above | | Reset Selection |
| Question 8 of 15 | 1.0 Points |
Efficiency ratios indicate: I) How productively is the firm utilizing its assets. II) How liquid is the firm. III) How profitable is the firm. IV) How highly is the firm valued by investors. | A. I only | | | B. II only | | | C. III only | | | D. III and IV only | | Reset Selection |
| Question 9 of 15 | 1.0 Points |
Profitability ratios indicate: I) How productively is the firm utilizing its assets. II) How liquid is the firm. III) How profitable is the firm. IV) How highly is the firm valued by the investors. | A. I only | | | B. II only | | | C. III only | | | D. III and IV only | | Reset Selection |
| Question 10 of 15 | 1.0 Points |
Given the following assets; I) Long-term assets II) Inventories III) Receivables IV) Marketable securities Which is the least liquid of these assets? Reset Selection |
| Question 11 of 15 | 1.0 Points |
Given the following data: Total current assets = $852 Total current liabilities = $406 Long-term debt = $442 Calculate the net working capital. | A. $446 | | | B. $852 | | | C. $410 | | | D. None of the above | | Reset Selection |
| Question 12 of 15 | 1.0 Points |
The cash budget is the primary short-term financial planning tool. The key reasons a cash budget is created are: I) To estimate your investment in assets II) To estimate the size and timing of your new cash flows III) To prepare for potential financing needs | A. I only | | | B. II and III only | | | C. II only | | | D. III only | | Reset Selection |
| Question 13 of 15 | 1.0 Points |
Net working capital is defined as: | A. The current assets in a business | | | B. The difference between current assets and current liabilities | | | C. The present value of all short-term cash flows | | | D. The difference between all assets and liabilities | | Reset Selection |
| Question 14 of 15 | 1.0 Points |
Cash inflow in cash budgeting comes mainly from: | A. Collection on accounts receivable | | | B. Short-term debt | | | C. Issue of securities | | | D. None of the above | | Reset Selection |
| Question 15 of 15 | 1.0 Points |
The firm's internal growth rate is defined as: | A. retained earnings/net income | | | B. retained earnings/net assets | | | C. retained earnings/total assets | | | D. none of the above | | Reset Selection |
